Half of Americans say they didn't get a raise in the last year

A new survey from Bankrate showed that 52% of American
workers didn't get a raise in the last 12 months.

This is happening even though labor market indicators
like the unemployment rate and the number of job openings are
healthier than they've been in years.

The aftermath of the Great Recession could be making
both employers and employees overcautious.

Even though unemployment sits near historic lows, many workers
have not seen any benefit from the strong job market. In fact,
more than half of all American workers (52%) did not get a raise
over the past 12 months, according to a new survey
fromBankrate.

And the numbers are actually worse than they look, because in
reality only 38% of workers saw their pay increased at their
current job. Another 18%, which includes 8% of those surveyed who
also got a raise from their previous employer, saw their wages go
up when they got a new job.

For older workers, the numbers are even worse. Nearly two-thirds
of those aged 53 and up did not get a raise at their current job
or get a new job that pays better over the past 12 months. That
compares to a 47% rate among workers younger than 53.

What's happening in the market?

Employers are being cautious, and so are employees. Even though
the unemployment rate has been low and the number of available
jobs hit 6 million in August according to the Bureau of Labor
Statistics (BLS), workers are reluctant to move on from their
current position.

That job openings number is only slightly down from July, which
set a record for the data tracked by the BLS since 2000. But,
despite all the demand, the "quits" rate, which measures the
percentage of people who voluntarily left their jobs in a month,
was only 2.1% in August. That's virtually unchanged over the past
two years, according to data analysis done by Jon Talton at
theSeattle
Times.

If employees won't quit their jobs when they don't get raises (or
at least be willing to) it removes incentive for companies to pay
workers more. But workers may not hold the lack of a raise
against their company for the same reason they aren't willing to
leave their job, despite the market being healthy -- they're
nervous about the economy's ongoing prospects.

Those concerns may not be valid, but
theGreat Recessionhappened
recently enough (December 2007 through January 2009, though those
dates are debatable) that people remember it. That may have left
a lingering hangover that keeps some people -- in fact, quite a
lot of them -- from pushing for a raise and being willing to
leave when they don't get one.

How were raises given out?

Among the American workers who did get a pay raise from their
current employer, a growing number got one by getting a promotion
and new responsibilities. That number grew to 24% of those
getting raises, up from 10% last year.

About a quarter of raises (27%) came through cost-of-living
increases, while performance-based raises were the top reason
(52%) workers saw their pay rise. Another 8% cited a different
reason, and 4% did not know why their pay was increased,
according to Bankrate, which noted the likelihood of getting a
raise from your current employer rises steadily with income and
education level.

"While the economy continues to improve, it's disappointing that
Americans' wages have not," said Bankrate.com Chief Financial
Analyst Greg McBride. "Though younger workers are experiencing
career advancement, older Americans are hampered by stagnant
incomes. This makes it even more vital to start saving early,
since significant wage gains become less frequent as you get
older.

Don't expect a raise

There are a number of fields where
wageshave risen, but that has not emboldened
workers in less in-demand jobs to push for more money. What's
clear is that in many cases companies are not offering raises and
employees are not asking for them.

If you want a raise, it makes sense to test your marketability.
If you get another offer for more money, you can either take it
or use it as leverage. Some employers may not respond well to
that, but others will fight to retain valuable employees.

Take the lead in your own employment situation. Ask for a raise,
and if the request is denied, ask for parameters to earn one over
a reasonable period of time (3 to 6 months). If your employer
won't negotiate, it may be time to test the job market.

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